Startup Created By JP Morgan Alums, Launches Blockchain For Service On Amazon Web Service

The Kadena project was founded by former members of the JPMorgan blockchain group. The group of developers broke out in 2016 and decided to launch their own blockchain startup. The team seems to be doing well as their vision for a blockchain ScalableBFT appears more promising than what IBM and other companies are offering.

When interviewed by Fortune, the co-founder of the company Stuart Popejoy said that many of the private blockchains that are currently in existence are not adequate for large scale use because they are slow and can only accommodate 20 users at a time. The scalability problem has plagued the private blockchain sector even more than the public blockchain sector. It is a serious problem because it conflicts with the primary purpose of blockchain technology which is allowing transparency for different people in different places. Many people should be able to see the ledger in almost real-time without affecting the speed of the blockchain.

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Kadena claims that it’s new blockchain is being used to manage data by two Fortune 100 companies in the insurance and health care sectors. However, the company did not disclose the names of these companies due to confidentiality obligations. Popejoy said:

“Since blockchain technology is gradually reaching mass adoption with businesses, governments and healthcare sectors using it, it is important that the scalability and security issues are addressed once and for all. Kadena addresses these issues.”

While the startup will allow small projects to use the technology for free, bigger companies will be charged for use their tools. It is now available on the Amazon Web Services marketplace. Popejoy said that it is in discussions with Microsoft to expand Kadena to the Azure cloud.
So far, the team behind Kadena has been able to raise up to $12 million from many funds specifically for cryptocurrency investments. This includes the Susquehanna International Group, Multicoin Capital, and Devonshire Investors. If it’s private blockchain is as efficient as it claims, it may help promote the massive adoption of blockchain technology among enterprises.

IBM Defends Its Provision Of Blockchain As A Service

Kadena isn’t the first private blockchain that will be used as a service. There are already existing private blockchains like the ones by IBM and R3. These ones will create competition for Kadena but Popejoy is certain that Kadena will stand out because of its scalability. It doesn’t rely on Ethereum like other blockchains according to Popejoy.

IBM was quick to respond after Popejoy made his comment about its service. A spokesperson from IBM said:

“Everyone knows that big, small and medium organizations have active networks on our blockchain platform. They run in many areas including trade finance, food safety, the global supply chain, etc. There are many reasons why these organizations have decided to use our services. However, let me mention only three. One is that we offer a multi-cloud approach, the second is that our blockchain scales efficiently (takes more than 20 nodes at a time), and the third is that we offer services for private and public networks.”

Do you think the industry needs a new blockchain? Share your comment below.


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